After China's digital Yuan, Dubai has also announced the launch of its own cryptocurrency DubaiCoin. The coin will soon be used for both digital and in-person purchases in the city.
The currency launched by the United Arab Emirates-based public blockchain company Arabianchain Technology is trading on a select number of crypto exchanges.
However, the Dubai Electronic Security Centre announced on May 27 that the ‘DubaiCoin’ digital currency has not been approved by any official entity and that the website promoting the coin is an unlicensed site, which aims to phish e-mail information, passwords and phone numbers of people through an electronic form, Khaleej Times reported.
“Dubai Coin cryptocurrency was never approved by any official authority. The website promoting the coin is an elaborate phishing campaign that is designed to steal personal information from its visitors,” tweeted the Media office of Dubai government from its official handle.
What is DubaiCoin?
Launched by a UAE based public blockchain company, DubaiCoin (DBIX), is currently trading on select crypto exchanges. Since its launch, the price of the cryptocurrency has surged more than 1000 percent, according to data from Crypto.com.
The coin will be available to be mined by the public. The coin's current price at the time of writing was $1.13 with a market cap of $4.84 million. The current supply of DBIX is 4.26 million.
“DubaiCoin will soon be able to be used to pay for a range of goods and services both in-store and online, with the clear intention for the coin to be used in place of traditional bank-backed currencies. Circulation of the new digital currency will be controlled by both the city itself and authorized brokers,” Arabianchain Technology said in a press release.
Will Dubai control its prices?
It is not yet clear what exactly is meant by the city controlling the prices of DubaiCoin. It is speculated that the cryptocurrency is not a traditional DeFi token but something more like a central bank digital cryptocurrency. It is expected that DubaiCoin will not be as volatile as other cryptocurrencies as a result, its value expected to be tied to the Dirham in some way.
Dirham is one of the more stable currencies against the US Dollar in the world due to certain special agreements between the two countries.
Why an official cryptocurrency?
Countries are increasingly looking to regulate the cryptocurrency sector and use their own official CBDCs instead. China's digital Yuan is one such official cryptocurrencies but other countries like India, UK, and the US are considering launching similar digital coins.